The UFC is ready to embark on doubtlessly the largest yr within the historical past of the promotion with a brand new broadcast rights deal arriving in 2025.
Whereas executives at TKO Group Holdings—the mixed guardian firm to UFC and WWE—stay versatile when addressing any potential enterprise companions shifting ahead, it’s additionally potential that nothing a lot modifications when a brand new deal is struck. TKO President and Chief Working Officer Mark Shapiro has said that nothing is off the desk when it comes time to barter a brand new UFC broadcast rights deal, however that the present method main occasions are bought as pay-per-views continues to work nicely.
“What I can let you know as we enter into these negotiations, on the finish of the day it’s what the market will bear,” Shapiro mentioned throughout a TKO earnings name on Wednesday. “That’s actually what it’s. We’re subsequent up. We’re the subsequent large factor on the block, if you’ll, We have now a confirmed observe report. Our demos are insane, actually simply throughout TKO. Fifty p.c of our viewers is 18-to-34 [year olds], which is what most platforms and firms are chasing. So we’re in good stead there. We have now terrific versification and we drive a really robust Hispanic viewers with regards to the UFC and we’re gender impartial. We’re not simply speaking about ladies watching ladies’s fights. That’s not the case. We have now a powerful base of girls watching all our fights. So we’re sitting at a reasonably good place.
“Pay-per-view remains to be a powerful mannequin. It labored to construct ESPN+. It’s labored for us internationally. We’ve acquired nice historical past with it. DirecTV and DISH [Network] could also be coming collectively. So who is aware of the sort of alternative there.”
Throughout previous calls with buyers, Shapiro has mentioned that there was a world the place the UFC’s PPV model could potentially go away underneath the proper phrases with a broadcast associate. As an illustration, Netflix is about to broadcast the upcoming Jake Paul vs. Mike Tyson struggle to its 282 million subscribers with none extra price hooked up to look at the occasion.
In the meantime, WWE used to function underneath an identical format as UFC with month-to-month PPV occasions however that mannequin modified with the launch of the WWE Community in 2014. Now main WWE occasions akin to WrestleMania or SummerSlam are thought-about “premium dwell occasions” which might be at present broadcast on Peacock—one of many promotion’s broadcast companions—at no extra price outdoors of paying for a subscription to the streaming service.
As a lot as that works for WWE, Shapiro can’t say for sure if PPV is ever going away for UFC. That call is determined by what a broadcast associate needs when negotiations begin in early 2025.
“Issues change. Fashions change. Viewing patterns change,” Shapiro mentioned. “Broadcast is now sort of again in if you’ll, cable is clearly having its struggles however nonetheless nothing to frown at. Streaming is on hearth and new platforms and quick channels are coming on a regular basis.
“So it’s actually simply demonstrating and signaling to the market that we’ve got flexibility and a willingness to play ball on a myriad of enterprise fashions. Ari and I specifically are very targeted on not simply speaking that however actively discussing these potential fashions with the entire companions after which some.”
When the UFC initially signed with ESPN in 2018, a five-year deal ultimately became a seven-year partnership with the Disney-owned firm additionally taking on PPV broadcasts. Now the entire main UFC occasions are bought completely via ESPN+ moderately than the earlier mannequin the place those self same occasions could be out there via conventional PPV shops like inDemand.
Because the UFC’s present broadcast associate, ESPN maintains an unique negotiating interval to achieve phrases on a brand new deal, though it’s extremely unlikely the 2 sides strike a cut price earlier than Dana White’s MMA group at the very least fields affords from different potential suitors. Shapiro made it clear the UFC needs to maximise its worth in these subsequent negotiations with potential companions.
In different phrases, if any person is keen to pay, the UFC is keen to pay attention.
“When it comes to what actually advantages us and our shareholders is maximizing worth on these renewals,” Shapiro mentioned. “That’s the underside line. We’re not seeking to upend or change for change sake or unorthodox fashions, we need to maximize our rights. Finish of story. UFC is mainstream, extremely standard. I see among the struggles happening with different leagues proper now, each linear and digital. Leagues which have began new seasons they usually’re not off to a rocket begin like we’re accustomed to. That’s not the case with UFC. We’re nonetheless driving [subscriptions] to ESPN+. Once we’re on ESPN, ESPN2 or ABC, we’re a scores winner and driving extra promoting for these platforms.
“If we’ve got to be inventive to assist potential companions or deliver different suitors within the door in order that we get the next worth or dwell as much as the information that the road has been giving us on the renewal — not the one which we’re giving them however the one their giving us — then we’re going to do it. All we’re attempting to sign to our shareholders and all we’re attempting to sign to the media suitors, the platforms, the businesses which might be going to be chasing us comparatively quickly.”
